We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Must Add TransDigm Group Stock to Your Portfolio Now
Read MoreHide Full Article
TransDigm Group Inc. (TDG - Free Report) is a producer, supplier and designer of highly engineered aerospace components, systems and subsystems for use in commercial and military aircraft. Its rising earnings estimates, improving budget for defense, better solvency and strong liquidity offer a great investment opportunity in the Zacks Aerospace Defense Equipment industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an investment opportunity at the moment.
TDG’s Growth Projections & Surprise History
The Zacks Consensus Estimate for TDG’s fiscal 2025 sales is pegged at $8.87 billion, which indicates year-over-year growth of 11.7%.
The consensus estimate for the company’s earnings per share (EPS) for fiscal 2025 is pegged at $37.21, which indicates year-over-year growth of 9.5%.
TransDigm Group’s long-term (three to five years) earnings growth is pegged at 13.5%.
It delivered an average earnings surprise of 6.50% in the last four quarters.
TDG’s Solvency
TransDigm Group’s times interest earned ratio (TIE) at the end of the first quarter of fiscal 2025 was 2.7. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
TDG’s Liquidity
The company’s current ratio at the end of the first quarter of fiscal 2025 was 2.70, higher than the industry’s average of 1.68. The ratio, being greater than one, indicates TransDigm Group’s ability to meet its future short-term liabilities without difficulties.
Rising Defense Budget
In August 2024, the U.S. Senate Committee on Appropriations approved the Fiscal Year 2025 Defense Appropriations Act, which provides $852.2 billion in total funding, indicating a 3.3% increase from fiscal 2024’s approved amount. Such a robust budgetary provision offers solid growth opportunities for TransDigm Group, with its products holding a significant position in the U.S. defense market.
Improving Aftermarket Sales
The commercial aerospace industry is booming due to the steadily improving air traffic trend over the past year. This, in turn, has been benefiting TransDigm Group. In the first quarter of fiscal 2025, the company continued to witness robust commercial air traffic demand, with both domestic and international revenue passenger kilometers reflecting strong growth trends. Consequently, TDG’s commercial aftermarket sales witnessed a solid 9.9% year-over-year improvement in the fiscal first quarter.
TDG Stock Price Performance
In the past three months, TDG shares have rallied 3% against the industry’s decline of 3.3%.
HEI’s long-term earnings growth rate is pegged at 17%. The Zacks Consensus Estimate for the company’s total revenues for fiscal 2025 is $4.29 billion, which indicates year-over-year growth of 11.3%.
The Zacks Consensus Estimate for ATRO’s 2025 EPS is $1.29, which indicates year-over-year growth of 18.4%. The consensus estimate for ATRO’s total revenues for 2025 is pegged at $829.5 million, which indicates year-over-year growth of 4.3%.
TGI delivered an average earnings surprise of 159.38% in the last four quarters. The Zacks Consensus Estimate for TGI’s fiscal 2025 EPS is 68 cents, which is better than the six cents loss per share in the prior year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Must Add TransDigm Group Stock to Your Portfolio Now
TransDigm Group Inc. (TDG - Free Report) is a producer, supplier and designer of highly engineered aerospace components, systems and subsystems for use in commercial and military aircraft. Its rising earnings estimates, improving budget for defense, better solvency and strong liquidity offer a great investment opportunity in the Zacks Aerospace Defense Equipment industry.
Let’s focus on the reasons that make this Zacks Rank #2 (Buy) stock an investment opportunity at the moment.
TDG’s Growth Projections & Surprise History
The Zacks Consensus Estimate for TDG’s fiscal 2025 sales is pegged at $8.87 billion, which indicates year-over-year growth of 11.7%.
The consensus estimate for the company’s earnings per share (EPS) for fiscal 2025 is pegged at $37.21, which indicates year-over-year growth of 9.5%.
TransDigm Group’s long-term (three to five years) earnings growth is pegged at 13.5%.
It delivered an average earnings surprise of 6.50% in the last four quarters.
TDG’s Solvency
TransDigm Group’s times interest earned ratio (TIE) at the end of the first quarter of fiscal 2025 was 2.7. The strong TIE ratio indicates that the company will be able to meet its interest payment obligations in the near term without any problems.
TDG’s Liquidity
The company’s current ratio at the end of the first quarter of fiscal 2025 was 2.70, higher than the industry’s average of 1.68. The ratio, being greater than one, indicates TransDigm Group’s ability to meet its future short-term liabilities without difficulties.
Rising Defense Budget
In August 2024, the U.S. Senate Committee on Appropriations approved the Fiscal Year 2025 Defense Appropriations Act, which provides $852.2 billion in total funding, indicating a 3.3% increase from fiscal 2024’s approved amount. Such a robust budgetary provision offers solid growth opportunities for TransDigm Group, with its products holding a significant position in the U.S. defense market.
Improving Aftermarket Sales
The commercial aerospace industry is booming due to the steadily improving air traffic trend over the past year. This, in turn, has been benefiting TransDigm Group. In the first quarter of fiscal 2025, the company continued to witness robust commercial air traffic demand, with both domestic and international revenue passenger kilometers reflecting strong growth trends. Consequently, TDG’s commercial aftermarket sales witnessed a solid 9.9% year-over-year improvement in the fiscal first quarter.
TDG Stock Price Performance
In the past three months, TDG shares have rallied 3% against the industry’s decline of 3.3%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Heico (HEI - Free Report) , Astronics (ATRO - Free Report) and Triumph Group (TGI - Free Report) . Astronics and Triumph Group each sport a Zacks Rank #1 (Strong Buy) at present, while Heico carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
HEI’s long-term earnings growth rate is pegged at 17%. The Zacks Consensus Estimate for the company’s total revenues for fiscal 2025 is $4.29 billion, which indicates year-over-year growth of 11.3%.
The Zacks Consensus Estimate for ATRO’s 2025 EPS is $1.29, which indicates year-over-year growth of 18.4%. The consensus estimate for ATRO’s total revenues for 2025 is pegged at $829.5 million, which indicates year-over-year growth of 4.3%.
TGI delivered an average earnings surprise of 159.38% in the last four quarters. The Zacks Consensus Estimate for TGI’s fiscal 2025 EPS is 68 cents, which is better than the six cents loss per share in the prior year.